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The aim of this paper is to analyze the Mexican energy system and its greenhouse gas (GHG) emissions for the year 2012 and to estimate a baseline scenario for 2026 using an input-output analysis. The elasticity of emissions with respect to national demand is calculated in order to identify the total and distributed effects of CO2 equivalent (CO2-eq) emissions. In this framework, the analysis evaluates the effects in the economy related to changes in individual sector demands, and, vice versa, the effect on individual sectors due to global changes in national demands. Results show that passenger and freight transport, power generation, iron and steel industry, chemical industry, air transportation and agriculture concentrate the largest potential for mitigation strategies, and also have important distributive effects on the Mexican economy. Results are evaluated under the mitigation strategies of industrial sector proposed by the Fifth Assessment Report of the IPCC.

Assessing the Impacts of Final Demand on CO<sub>2</sub>-eq Emissions in the Mexican Economy: An Input-Output Analysis